French private equity company Ardian SAS is opening its first office in Canada to tap what it says is fertile ground for sustainable investments in renewable energy and other sectors.
The Paris-based firm, which counts about US$9.3-billion from Canadian clients out of US$156-billion in total assets under management, is setting up shop in Montreal with a dozen employees to start. The team will be led by Frédérick Castonguay, a finance specialist who previously worked at Blue Bridge Wealth Management and Rio Tinto RTPPF.
The company sees a chance to build on existing partnerships with Canadian pension funds, endowments and other investors. It says having a team on the ground in Canada will boost opportunities for socially responsible investing, adding to Ardian’s existing Canadian holdings such as Maple Leaf – a battery storage joint venture in Ontario with energy supplier Enel X.
“We have a big ambition to grow our footprint,” Mark Benedetti, a member of Ardian’s executive committee and co-head of its U.S. business, said in an interview. “I really feel like it’s just the beginning. I think we can do a lot here.”
The private investment house will take a broad view when weighing how to spend fund money in Canada, Mr. Benedetti said. Still, there will be some clear focus areas, such as renewable energy.
“That could be wind, that could be solar, that could be hydrogen. That could be part of the hydrogen value chain,” he said. “So it’s not just in the creation of the energy itself but also all the different players that contribute to that.”
The Canadian government announced $80-billion in tax credits and investments in its spring budget aimed at promoting clean energy and sustainable infrastructure projects over the next decade. Observers have said they represent an unprecedented industrial policy leap by Canadian standards, even if they are dwarfed in many sectors by new American spending widely expected to surpass Washington’s projection of US$370-billion over a similar period.
Ardian’s investments span private equity, infrastructure, real estate and credit. Montreal will be its third office in North America after New York and San Francisco.
On Thursday, it will announce what it calls a “pioneering private equity investment platform” dedicated to the semi-conductor industry, largely focused on European companies. The sector is hugely strategic for the global economy, with semi-conductor components found in a plethora of consumer and commercial products, from cars to computers.
In addition to Maple Leaf, Ardian’s corporate investments in Canada include Syntax, a Montreal-based IT services company, and Montreal-based New Look Vision, Canada’s biggest eyewear retailer. Clients in Canada include pension giant Caisse de dépôt et placement du Québec, the City of Montreal, University of Montreal, the Fondation Chagnon and Investment Management Corp. of Ontario.
The Caisse was an early backer of Ardian, when it was the private equity arm of French insurer Axa. Among the first commitments Ardian received from a third-party investor was from the pension fund manager, around 1997. French businesswoman Dominique Senequier led an employee buyout of Axa Private Equity in 2013 and created Ardian.
That relationship with the Caisse led to other local investors for Ardian, and it’s a key part of the reason Ardian set up in Montreal, Mr. Benedetti said. “We owe them a lot,” he said of the Caisse. “It was important to be there with them, alongside them and interacting with them locally with our office here.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
